Can you extend the limit on your credit cards? Yes, you can. In this guide, we’ll discuss how to increase credit limit of yours — and whether it’s a good idea. Follow these tips, and you’ll be on your way to a higher credit limit in no time.
Eligibility
The first step to getting a higher credit limit is understanding when you’re eligible for it. If you’re in good standing with your credit card issuer, you may be able to get a higher limit without asking.
For example, suppose you’ve been using your credit card responsibly for a year or more and paying your bill on time. In that case, you may be eligible for an automatic credit limit increase.
Your overall credit score is another factor affecting your eligibility for a higher credit limit. If your score has improved since you’ve opened your account, you may be able to get a higher limit. Aside from your credit history, your credit score includes your debt-to-income ratio and current credit utilization. If you’ve been using a high percentage of your available credit, you may not be eligible for an increase.
How Do I Increase My Credit Card Limit?
Here are five tips to help you increase your credit limit:
Tip #1: Get a Credit Card with a Higher Limit
One way to up your chances of getting approved is to apply for a secured credit card. With a secured credit card, you’ll have to make a deposit that will be used as collateral if you default on your payments.
After you’ve paid this initial deposit, you’ll typically be able to get a credit limit equal to its amount.
Tip #2: Request an Increase from Your Issuer
The second bit of guidance on how to increase your credit card limit has to do with requesting it from your issuer. You can usually do this online or over the phone. When you request an increase, your issuer will check your credit report to see how you’ve been managing your debt.
If you have a history of making on-time payments and keeping your balance and utilization relatively low, you’re more likely to be approved for a higher limit.
Tip #3: Look for Automatic Increases
“How can I raise my credit limit without asking for it?”, you ask? Well, look for automatic credit limit increases. Namely, some credit card issuers offer this option after you’ve used your card responsibly for a certain period. If you’re unsure whether this is the case with your issuer, give them a call and ask.
Tip #4: Use Your Credit Card More Often
If your credit card is gathering dust in your wallet, your provider may hesitate to give you a higher limit. After all, why would they want to increase your limit if you’re not using the credit they’ve already extended to you?
To increase your chances of getting a credit limit increase, start using your credit card more often for small purchases, such as shopping at Costco. Then, be sure to pay off your balance in full and on time every month.
Tip #5: Keep Your Balance Low
If you have a lot of debt and a low credit limit, your credit utilization ratio will be high. On the other hand, if you have a low balance and a high credit limit, your credit utilization ratio will be low. Issuers typically like to see a credit utilization ratio of 30% or less.
So, if you’re hoping to get a higher limit, it’s essential to keep your balance low beforehand.
Requesting a Credit Line Increase from Major Credit Card Companies
Here’s how to ask for a credit line increase from four of the biggest credit card companies:
Chase
Many people are wondering how to increase the credit limit on Chase cards. To hike up this limit, call the number on the back of your Chase credit card. At the moment, online requests are not an option.
Another way Chase cardholders can get a credit increase is simply by having good credit standing. This way, they might receive an automatic limit increase.
However, the simplest method to raise your credit limit is to get a new credit card. While you won’t be able to increase the credit limit on your old Chase card by creating a new Chase credit account, you’ll gain an extra line of credit to utilize.
Capital One
We’ll now give an overview of how to increase the credit limit for Capital One cards. If you’re a Capital One cardholder, you can request a credit increase via phone or online. Select “Request Credit Increase” from the services menu in the “Services” tab.
First, fill out the form to submit your request. After determining your creditworthiness, Capital One will ask you to provide personal information, such as your annual income, job status, monthly mortgage or rental payment, and desired maximum credit line. Your new credit limit will be ready right away if you get approved.
As with many other providers, your credit limit can also increase automatically (once or twice a year) if you’re in good standing.
American Express
Here’s how to increase your credit limit with Amex: You can request a credit increase by calling the number on the back of your card or through your online account. Navigate to “Account Services” and then to “Card Management.”
When you reach this point, Amex will ask you for your desired credit limit, and you’ll have to verify your yearly earnings. You can also apply for a new Amex credit card and extend your credit that way.
Discover
Finally, you may be wondering how to increase your credit limit on Discover cards. Cardholders can request credit line increases via phone or internet banking. To ask for a Discover credit increase online, click the “Manage” button and select the “Credit Line Increase” tab.
You’ll then be taken to a page that shows your current card details, including your existing limit and available credit. Then, enter your annual gross income, your employer’s name, and your monthly housing cost, and click “Submit.”
How Much Should You Ask for
You’re probably wondering by now “How much of a credit limit increase should I ask for?”. You don’t want to ask for too little and end up with a useless increase, but you also don’t want to ask for too much and be denied.
A good rule of thumb is to request an increase of up to 30% of your current credit limit. For example, if your credit limit is $1,000, you could request an increase to $1,300.
Is It Good to Increase Your Credit Limit?
There are several benefits to having a higher credit limit, including peace of mind in an emergency, a lower credit utilization ratio, and improved chances of loan approval.
However, it’s important to remember that increasing your credit limit also means you may be tempted to spend more money. If you’re not careful, you could end up in serious debt. Therefore, before you request a credit increase, make sure you’re comfortable with the risks involved and don’t spend your funds on the common money wasters.
If you’re confident you can handle the terms, a higher credit limit can significantly improve your financial situation.
Conclusion
Now you know how to get a higher credit limit with several providers. You can either get a credit card with a higher limit, request a limit increase from your issuer, look for automatic increases, use your credit card more often, and keep your balance low.
All in all, if you follow these simple tips, you should be well on your way to getting that coveted higher limit.
As always, stay mindful of how much credit you use each month to avoid exceeding your limit and damaging your credit score. Good luck!
FAQs
How can I increase my credit limit at Bank of America?
How to increase your credit limit with Bank of America cards is relatively easy to achieve online or by phone.
If you have an account with Bank of America, log in to it and choose “Request a Credit Line Increase” from the drop-down menu under the “Card Details” section.
That said, Bank of America also offers regular automatic credit limit increases. If you’re entitled to an automatic increase, you will receive an email or be notified via your online banking account.
How can I increase the credit limit at Wells Fargo?
Here is how to increase the credit limit on Wells Fargo cards: simply call the bank’s customer care line at 1-800-642-4720 and request one. You can’t submit a request for an increase via internet banking.
How can I increase my credit limit naturally?
There are several ways to increase your credit limit naturally, including paying your bills on time, keeping your balance low, and maintaining a good credit score.
Additionally, you can try to get a higher credit limit by opening a new credit card or becoming an authorized user on another person’s credit card.
Despite the fact you know how to increase credit limit on your cards, remember that these methods can also have drawbacks, such as impacting your credit score or costing you money in the long run, if you end up incurring too much debt.
